Rep. Bryan Shupe's Opinion on the Incoming Gas Tax

Representative Bryan Shupe is raising concerns about a proposed gas tax increase that surfaced in Governor Meyer’s recently recommended state budget on March 31st. As more information comes out from DELDOT (Delaware Department of Transportation), even members of the Governor’s own party are acknowledging — in interviews with Delaware Public Media — that the increase will likely come in the form of a higher gas tax.

The Facts

Delaware already has a gas tax of $0.23 per gallon. That means every time someone fills up a 20-gallon tank, they’re paying $4.60 to the state — every single time they get gas. Under the Governor’s proposal, that tax would go up, generating an estimated $35 million in new revenue per year. While $35 million might sound significant, Shupe points out that it’s actually just 0.5% of the state’s $7 billion budget.

“Is a Tax Increase Really Necessary?”

Representative Shupe finds it hard to believe that the Governor couldn’t trim just 0.5% of that $7 billion to avoid hitting Delaware families with more taxes.

He offers three suggestions for the Governor as alternatives to raising the gas tax:

1. Stop funding the $100 million legislative hall renovation and new parking garage for legislators.

2. Eliminate the $80 million “Reinvestment Fund.” This fund, about $80 million annually over the last two years, is spent without the usual financial oversight (Joint Finance Committee or Bond Committee), on the last day of session.

3. Find 0.5% in wasteful or over funded areas within Delaware’s $7 billion budget to cover costs instead of raising taxes.

Shupe’s Concern:

What troubles Representative Shupe most is that Governor Meyer is a former math teacher — someone who fully understands the numbers — yet still chooses to impose new taxes. In Shupe’s view, this signals a continued reliance on a tax-and-spend mentality.

“Delaware doesn’t have a revenue problem — it has a spending problem,” Shupe says.

Unless the state reins in its financial practices, Shupe warns, this gas tax will likely be followed by personal income tax increases, the elimination of the state’s reserve account, and additional burdens on families and small businesses.

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